  |
||||
|
Breaking News from America's Progressive Community... 1999 Releases March
The press releases posted here have been provided to NewsCenter by the one of the many progressive organizations we have selected to participate. If you would like more information about this press release, you should contact the organization directly. |
||||
| MARCH
9, 1999 11:31 PM FOR IMMEDIATE RELEASE CONTACT: INFACT Todd Basch, infact@igc.apc.org 617-742-4583 |
||||
| Breakup of RJR Nabisco is Significant Victory For INFACT's Tobacco Industry Campaign and Boycott | ||||
| BOSTON
- March 9 - The sale of RJR Nabisco's international tobacco unit, followed by the split of
its US tobacco business from its Nabisco food division, marks a significant
victory for INFACT's Tobacco Industry Campaign, targeting RJR Nabisco along with
Philip Morris since 1993. "The decision to split RJR Nabisco's food and
tobacco businesses shows that through grassroots organizing and public pressure,
people can win life-saving changes from giant corporations," says INFACT
Executive Director Kathryn Mulvey. The corporation is seeking to free Nabisco,
which along with Philip Morris's Kraft has been a target of INFACT's Tobacco
Industry Boycott, from the liability of tobacco.
"With the completion of these transactions, RJR Nabisco--the corporation responsible for Joe Camel and other outrageous youth-oriented tobacco promotion schemes--will no longer exist in the same size and scope," says Mulvey. "Tobacco giants like Philip Morris and RJR Nabisco have long gotten away with marketing abuses because of their stranglehold over public policy." With the disintegration of RJR Nabisco, its influence as a corporation--along with that of the entire tobacco industry--over US and international policy will be dramatically reduced. The removal of the veil of legitimacy provided by Nabisco will further shrink and isolate the tobacco business, and its capacity to spread tobacco addiction around the world. RJR Nabisco's statement that the separation will allow all divisions to meet their potential is an admission that the food business has been dragged down by the liabilities of tobacco. The corporation has faced intense pressure from investors favoring a Nabisco spin-off, some specifically referencing INFACT's Boycott as a reason to sever Nabisco's association with tobacco. "Just as public pressure forced RJR Nabisco to withdraw Joe Camel, organized consumer pressure on its food business and exposure of global abuses have helped create a climate forcing RJR Nabisco to sell off and quarantine its tobacco business," says Mulvey. Prior to the launch of INFACT's Boycott in 1994, Nabisco had been gaining ground from competitors. Since 1994, that trend has been reversed. Nabisco has disappointed analysts' projections of double-digit growth, and earnings have fallen short of expectations, according to the corporation's own Annual Reports and statements by top corporate executives. INFACT's Boycott has been a key factor in tarnishing Nabisco's image by linking food brands with the tobacco parent. Internal documents released as a result of the Minnesota lawsuit further demonstrate RJR Nabisco's concern about INFACT's Boycott. RJR Nabisco's decision to exit the international tobacco market comes less than a year after the release of INFACT's Global Aggression: The Case for World Standards and Bold US Action Challenging Philip Morris and RJR Nabisco. Through its ongoing Tobacco Industry Campaign, INFACT will monitor the impact of RJR Nabisco's breakup on tobacco marketing and influence-peddling around the world - including Japan Tobacco's promotion of new brands it is acquiring. INFACT will also closely monitor the spin-off to ensure that Nabisco will indeed be independent from RJR's tobacco interests. If the spin-off is completed, it would allow INFACT to focus full attention on Philip Morris - the driving force behind the tobacco industry in the US and internationally. ### Founded in 1977, INFACT's purpose is to stop life-threatening abuses of transnational corporations and increase their accountability to people around the world. INFACT is known for its successful Nestle and GE Boycott Campaigns. |
||||